What does Wallstrip Cancelletion Mean for Internet TV?

By Kfir Pravda | Published: January 8, 2009
Me and Howard Lindzon
Image by *Samantha Murphy* via Flickr

In one word – nothing.

Wallstrip was, for the last couple of years, a success story in the world of Internet TV. The show raised half a million dollars, and was sold to CBS for $5M – a X10 on the initial investment, which is the factor of successful startup exits. This was my favorite example for investors in Internet TV shows.

Today we were informed that the show is canceled, which is sad. However, saying that its cancellation means that Internet TV can’t make money is like saying that the fact that some mobile startup closed its doors means that there is no money in mobile innovation.

Sad as it may be, we shouldn’t look at it as if this is a clear sign that well produced Internet TV shows can’t make money. How many startups are closed every day? Some stats are claiming that startup success rate are less than 10%. But still, no one says that the whole idea of startups is flawed.

Let’s put things in perspective. Yes, independent Internet TV, especially high end productions, is still a young market. many production companies will not survive, especially with the latest economic slowdown. But, the vector is positive. We see more and more technologies bridging the gap between the TV set and the Internet. Online video is reaching more people than ever, on more devices. So we are in the right market – we just need cash and air to be there when the market will have enough money for all of us.

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  • well friend I theorize that one reason why advertisers are shunning TV for the Internet is that online ads let them track something!
  • i look this site more time i visit here!
  • I think you also have to question whether or not traditional media outlets are the best owners / managers of new media technologies. What I would like to see is what an internet TV startup and a wealthy venture capitalist could do together.
  • Kfir Pravda
    Guys thanks for the comments. Eli - time will tell. The trend of Internet TV is a fact of life, and I am not certain that the guys from the networks will rule this market.
  • Eli
    I think the big difference that you've failed to remember is that while yes, some startups and mobile technology companies fail, some do succeed. Has there been an Internet TV show that has succeeded?

    If all we see are the failures and their aren't any successes, the deep pocketed TV networks aren't going to fork over $5M per show anymore.
  • No one ever asked if traditional television was dead when a show got cancelled. Show cancellations are a simple fact of the medium. Audiences are fickle, the stock market is depressing, and people are expecting more from web TV than the typical chroma key host(ess) or street interview format.
  • Also, keep in mind that there are numerous variables involved in any show's cancellation:

    * Did the program run its course?
    * Were the creators (or distributor) burned out?
    * Did the subject matter dry up?
    * Did someone get a better deal elsewhere?
    * Were there politics involved?

    One example isn't enough to judge an entire medium by, but if there's a rash of well-produced shows getting expunged, then we can say there's a trend.
  • Actually, it's the exact OPPOSITE indication. Wallstrip. Got. Bought. .... Period.

    That's an indication that well-done internet video CAN be recognized for its quality. If it would have folded without doing anything, THEN someone could say that the investment was wasted, yadda yadda. The fact of the matter is that they did what startups all over the place are trying to do... build a product, get recognition and sell it.

    According to The New York Times, CBS is supposedly planning to repurpose the group for their Bnet property, so we'll see what happens with that.

    Either way, once the sale is made, the content creator's job is successfully done... Assuming that a sale was their goal to begin with.
  • RT @BillCammack: What does Wallstrip Cancelletion Mean for Internet TV? http://tinyurl.com/7ko4oy
  • RT @BillCammack: What does Wallstrip Cancelletion Mean for Internet TV? http://tinyurl.com/7ko4oy
  • What does Wallstrip Cancelletion Mean for Internet TV? http://tinyurl.com/7ko4oy
  • What does Wallstrip Cancelletion Mean for Internet TV? http://tinyurl.com/7ko4oy
  • What Wallstrip cancellation means for Internet TV@howardlindzon - http://bit.ly/12jGK
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